FD

FactSet Research Systems Inc. stock research

Nov 30, 2024

FY2025 Q1

FactSet Research Systems (FDS) Gross Margin — Quarter Ended Nov 30, 2024

Revenue increased from both the prior quarter and the same quarter last year. Gross profit grew at a faster pace than revenue, resulting in an improved gross margin compared to both periods.

Gross margin takeaway

Quarter ended Nov 30, 2024 · FY2025 Q1

Revenue increased from both the prior quarter and the same quarter last year. Gross profit grew at a faster pace than revenue, resulting in an improved gross margin compared to both periods.

  • The strongest observable driver was the expansion of gross margin, supported by revenue growth outpacing the increase in cost of revenue. This led to a higher gross profit margin.
  • Compared with the preceding quarter, gross margin was higher and gross profit increased. Versus the same quarter last year, both revenue and gross profit were higher, with gross margin also improving.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

54.5%

Gross profit

$309.9M

Revenue

$568.7M

Cost of revenue

$258.8M

Quarter-over-quarter change

+0.4 pts

Year-over-year change

+0.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Feb 29, 2024$545.9M$290.8M$255.1M53.3%
May 31, 2024$552.7M$305.7M$247.0M55.3%
Aug 31, 2024$562.2M$304.0M$258.2M54.1%
Nov 30, 2024$568.7M$309.9M$258.8M54.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Aug 31, 2024

+0.4 pts

Year-over-year change

Nov 30, 2023

+0.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver was the expansion of gross margin, supported by revenue growth outpacing the increase in cost of revenue. This led to a higher gross profit margin.

Compared with the preceding quarter, gross margin was higher and gross profit increased. Versus the same quarter last year, both revenue and gross profit were higher, with gross margin also improving.

Monitor the relative growth rates of revenue and cost of revenue, as cost growth has been slower than revenue growth, supporting margin improvement.